If there is one statement that always makes me cringe, it’s, “we need to bring new blood into the organization.” Often the result of frustration, business leaders tend to look to the outside in the hopes that someone who isn’t already “poisoned” by the company’s systems and culture can bring in the energy and new ideas to address problems and help transform the company.
Addressing Cultural Apathy
There are many examples of companies becoming stagnant and not addressing problems effectively – or getting to the point where the problems are no longer seen as problems. When this happens, though, it’s critical to understand the reasons behind the lack of success rather than jump to the conclusion that reaching outside for new leaders is the answer. New leaders are a countermeasure that can fail if the root causes of the poor performance or apathy are not effectively addressed.
As with any aspect of performance, improving the culture begins with clarifying the ideal condition – i.e., what you want the culture to look like, how people are expected to perform, the energy level, etc. Once the ideal culture is defined, it’s time to look for root causes or barriers preventing you from getting there. This may involve bringing in new leaders from the outside or it may not. Either way, a decision can be made logically rather than as reaction to frustration.
The Problems With New Blood
Although new ideas and increased energy can result from new leaders, there are many potential drawbacks that need to be considered before making the decision to hire from the outside.
New leaders can very easily have a negative effect on the cultural elements that you do want to maintain. I’ve seen situations over and over again where new leaders bring with them a new management style or differing values that actually damage the organization. This could result from increasing fear, shifting priorities, ignoring direction, or a host of other elements that are not actually related to the cultural and performance problems you are trying to address.
Another issue with new leaders is they often do not know the company’s systems, products, or customers, and the pressure to quickly bring about change can lead to poor decisions and destructive results. Unless the organization has a clearly defined way, new leaders have the freedom to operate in any way they see fit – which can lead to confusion and frustration of team members.
It has been speculated that one of the contributors to Toyota’s recent problems was the hiring of leaders from the outside who did not truly understand the Toyota Way. The tremendous growth experienced by the company had led them to abandon their policy of promoting only from the inside and bring in leaders who had not grown up in the system. And if it can happen to a company with a way as well developed as the TPS, it can happen to anyone.
Another major problem with hiring leaders from the outside is the demotivation of existing team members. Those on the team who want to grow and develop can begin to see feel undervalued, frustrated, and stuck. As a result, they may leave the company – or stay with a much lower level of energy.
Finally, hiring for the outside is expensive in terms of recruiting costs, time, and training of the person hired.
How To Do It – When You Have To Do It
Anyone reading this post may think that I never support the idea of bringing in people from the outside. Although I don’t particularly like it, I do recognize that there are times when it is necessary.
Before doing so, however, it is critical to clarify the ideal state so you can effectively understand the reasons behind the gap between the ideal and the current state. If it’s a leadership issue and changes are necessary, look inside the organization before going outside to find replacements. If nobody inside the organization is qualified for the position(s), look outside – but recognize that not having people ready identifies a serious problem within the leadership development process and requires countermeasures to prevent from having to do it again.
Also, the clearer the company’s values and way are understood and developed, the better chance you’ll have of hiring the right person and improving his or her chances for success.